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A proposal to increase the benefit cap for people on income support will allow them to earn up to £890 per week in order to protect children "who are forced to live in poverty" because of the current restrictions.
An annual report on non-contributory benefit rates has been produced by the Committee for Employment & Social Security.
The report covers changes to benefits funded by public taxes. There are routine increases annually to bring them in line with RPIX, which this year equates to an inflation of 2.4%.
In addition to that, the committee is also proposing to increase the income support benefit limitation, which is the maximum amount that a family can receive in aggregate, when combining earnings, other benefits and income support.
ESS President Peter Roffey said the current income limitation means 21 families in Guernsey are currently living below the poverty line.
“While we are of course disappointed that we can’t do more for people who are, by the States’ own definition, living in poverty, we recognise that this is not the time to be proposing large increases in expenditure.”
Pictured: Deputy Roffey will be bringing a policy letter to the States by the end of the year.
Deputy Roffey says the island must help those in need, even during difficult times.
"We must do everything we can to reduce the number of Guernsey children who are forced to live in poverty because of the benefit limitation," he said. "That’s why we’re proposing nearly a 5% increase in the cap for 2021. This will at least help some families get closer to having the income they need.”
The proposals will be debated at the States' December meeting.
People claiming income support within Guernsey’s care homes are also in line for an increase. The personal allowance offered to claimants will increase from £36 to £40 per week, if the proposals are approved.
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